INDIA: A Mumbai-based share broker, Jatin Sureshbhai Mehta (45), who allegedly carried out illegal transactions worth Rs. 4,672 crore in three months and evaded taxes estimated at over Rs 1.95 crore, was arrested by the officers of the crime branch of Mumbai police from Kandivali in North Mumbai on Tuesday.
As per the release issued by police on Thursday, the accused was operating the trading rings and allowing people to trade in equities outside the stock exchange platform using the “Moody” app.
He had stated that he had carried out transactions worth Rs 4,672 crore between March 23 and June 20. Such illegal transactions are described as “Dabba” share trading in local parlance.
“Moody” is an app that provides a better understanding of different stocks and also provides a better trading experience in the most efficient way.
Mehta was carrying out transactions in cash to avoid paying taxes such as security transaction tax, Capital Games Tax, the State Government stamp duty, SEBI turn-over fee, etc.
Based on a complaint lodged by a 37-year-old man that the accused Mehta was trading in stock without permission, the crime branch team raided his office at the Sanket Building at Mahaveer Nagar in Kandivali, along with a squad of the National Stock Exchange (NSE) and the Multi Commodity Exchange (MCX), on Tuesday.
An offence (FIR No. 50/2023, Mumbai Crime Branch) (FIR No. 410/2023, Kandivali Police) was registered under sections 406 (criminal breach of trust), 420 (cheating), 120 B (Criminal conspiracy), 201 (causing the disappearance of evidence of an offence) of the Indian Penal Code, and Section 23 of the Securities Contracts (Regulation) Act, 1956, against the accused.
In the raid, the police seized five mobile phones, one Tab, one laptop computer, one shredder, one router, one pen drive, and Rs 50,000 in cash.
The operation was carried out under the direction of Mumbai Police Commissioner Vivek Phansalkar, Special Police Commissioner Deven Bharti, Joint Police Commissioner (Crime), Additional Police Commissioner Shashikumar Meena, Deputy Police Commissioner Raj Tilak Roshan, ACP Chandrakant Jadhav, Senior Police Inspector Vinayak Chavan, Police Inspectors Sachin Gawas, Bharat Ghone, Abhijit Jadhav, Vishal Patil, Ajit Kangude, and others.